Abstract
Technological innovation occurs as much between organizations as within. In such knowledge-sharing alliances, interorganizational issues influence the alliance in combination with interpersonal interactions. Calls for establishing trust and trustworthiness often feature in alliance research, but they can be elusive for managers. Using a case study of the formation of a technological alliance in the robotics industry, we illustrate a model and propositions focused on partner search and alliance negotiation, linking previously proposed trustworthiness categories with the concepts of organizational justice. In particular, we suggest that procedural justice in alliance formation may be more important to alliance progression than perceptions of distributive justice.
Similar content being viewed by others
References
Alexander, S. and M. Ruderman, 1987, ‘The Role of Procedural and Distributive Justice in Organizational Behavior,’ Social Justice Research 1, 177-198.
Barney, J. and M. Hansen, 1994, ‘Trustworthiness as a Source of Competitive Advantage,’ Strategic Management Journal 15, 175-190.
Bigley, G. and J. Pearce, 1998, ‘Straining for Shared Meaning in Organization Science: Problems of Trust and Distrust,’ Academy of Management Review 23(3), 405-421.
Brass, D., K. Butterfield and B. Skaggs, 1998, ‘Relationships and Unethical Behavior: A Social Network Perspective,’ Academy of Management Review 23(1), 14-31.
Brockner, J. and P. Siegel, 1996, ‘Understanding the Interaction Between Procedural and Distributive Justice: The Role of Trust,’ in R.M. Kramer and T.R. Tyler (eds.), Trust in Organizations: Frontiers of Theory and Research, Thousand Oaks: Sage, pp. 390-413.
Casson, M., 1991, Global Research Strategy and International Competitiveness, Oxford: Blackwell.
Chan, M., 1997, ‘Some Theoretical Propositions Pertaining to the Context of Trust,’ The International Journal of Organizational Analysis 5, 227-248.
Creed, W. and R. Miles, 1996, ‘Trust in Organizations: A Conceptual Framework Linking Organizational Forms, Managerial Philosophies, and the Opportunity Costs of Controls,’ in R.M. Kramer and T.R. Tyler (eds.), Trust in Organizations: Frontiers of Theory and Research, Thousand Oaks: Sage, pp. 16-38.
Das, T. and B.-S. Teng, 1998, ‘Between Trust and Control: Developing Confidence in Partner Cooperation in Alliances,’ Academy of Management Review 23(3), 491-512.
Doz, Y., 1996, ‘The Evolution of Cooperation in Strategic Alliances: Initial Conditions or Learning Processes,’ Strategic Management Journal 17 (Summer), 55-83.
Duysters, G., G. Kok, and M. Vaandrager, 1999, ‘Crafting Successful Strategic Technology Partnerships,’ R&D Management 29(4), 343-351.
Flores, F. and R. Solomon, 1998, ‘Creating Trust,’ Business Ethics Quarterly 8(2), 205-232.
Gambetta, D., 1988, ‘Can We Trust Trust?’ in D. Gambetta (ed.), Trust: Making and Breaking Cooperative Relations, New York: Blackwell, pp. 213-237.
Ghoshal, S. and P. Moran, 1996, ‘Bad for Practice: A Critique of the Transaction Cost Theory,’ Academy of Management Review 21(1), 13-47.
Gulati, R., 1995, ‘Does Familiarity Breed Trust? The Implications of Repeated Ties for Contractual Choice of Alliances,’ Academy of Management Journal 38(1), 85-112.
Gulati, R., 1999, ‘Network Location and Learning: The Influence of Network Resources and Firm Capabilities on Alliance Formation,’ Strategic Management Journal 20(5), 397-420.
Gulati, R. and M. Gargiulo, 1999, ‘Where do Interorganizational Networks come from?’ American Journal of Sociology 104(5), 1439-1493.
Hagedoorn, J., 1996, ‘Trends and Patterns in Strategic Technology Partnering since the early Seventies,’ Review of Industrial Organization 11, 601-616.
Hagedoorn, J., A. Link, and N. Vonortas, 2000, ‘Research Partnerships,’ Research Policy 29, 567-586.
Hagen, J. and S. Choe, 1998, ‘Trust in Japanese Interfirm Relations: Institutional Sanctions Matter,’ Academy of Management Review 23(3), 589-600.
Hamel, G., 1991, ‘Competition for Competence and Inter-Partner Learning within International Strategic Alliances,’ Strategic Management Journal 12 (Summer), 83-103.
Hill, C., 1990, ‘Cooperation, Opportunism and the Invisible Hand: Implications for Transaction Cost Theory,’ Academy of Management Review 15(3), 500-513.
Howells, J., 1990, ‘The Internationalization of R&D and the Development of Global Research Networks,’ Regional Studies 24(6), 495-512.
Hubbard, G., A. Morkel, S. Davenport, and P. Beamish, 1999, ‘The Shiny Robot Venture,’ in Cases in Strategic Management: Australia and New Zealand, Frenchs Forest, Australia: Prentice Hall, pp. 201-213.
James. H., 2002, ‘The Trust Paradox: A Survey of Economic Enquiries into the Nature of Trust and Trustworthiness,’ Journal of Economic Behavior & Organization 47, 291-307.
Jones, G. and J. George, 1998, ‘The Experience and Evolution of Trust: Implications for Cooperation and Teamwork,’ Academy of Management Review 23(3), 531-546.
Kahneman, D. and D. Lovello, 1993, ‘Timid Choices and Bold Forecasts: A Cognitive Perspective on Risk Taking,’ Management Science 39(1), 17-31.
Kim, W.C. and R. Mauborgne, 1997, ‘Fair Process: Managing in the Knowledge Economy,’ Harvard Business Review 75(4), 65-75.
Kim, W.C. and R. Mauborgne, 1998, ‘Procedural Justice, Strategic Decision Making, and the Knowledge Economy,’ Strategic Management Journal 19(4), 323-338.
Korine, H., 1998, ‘Procedural Justice and Performance in Innovation Teams,’ Strategic Leadership Research Program Working Paper, WP41, London Business School.
Koza, M. and A. Lewin, 1998, ‘The Co-evolution of Strategic Alliances,’ Organization Science 9(3), 255-264.
Kumar, R. and K. Nti, 1998, ‘Differential Learning and Interaction in Alliance Dynamics: A Process and Outcome Discrepancy Model,’ Organization Science 9(3), 356-367.
Larson, A., 1992, ‘Network Dyads in Entrepreneurial Settings: A Study of the Governance of Exchange Relationships,’ Administrative Science Quarterly 37, 76-104.
Larsson, B., L. Bengtsson, K. Henriksson, and J. Sparks, 1998, ‘The Interorganizational Learning Dilemma: Collective Knowledge Development in Strategic Alliances,’ Organization Science 9(3), 285-305.
Levinthal, D. and J. March, 1993, ‘The Myopia of Learning,’ Strategic Management Journal 14(1), 95-112.
Leyden, D. and A. Link, 1999, ‘Federal Laboratories as Research Partners,’ International Journal of Industrial Organization 17, 575-592.
Lind, E. and T. Tyler, 1988, The Social Psychology of Procedural Justice, New York: Plenum Press.
McFarlin, D. and P. Sweeney, 1992, ‘Distributive and Procedural Justice as Predictors of Satisfaction with Personal and Organizational Outcomes,’ Academy of Management Journal 35(3), 626-637.
McKnight, D., L. Cummings, and N. Chervany, 1998, ‘Initial Trust Formation in New Organizational Relationships,’ Academy of Management Review 23(3), 473-490.
Miller, D., 1993, ‘The Architecture of Simplicity,’ Academy of Management Review 18(1), 116-138.
Mohr, J. and R. Spekman, 1994, ‘Characteristics of Partnership Success: Partnership Attributes, Communication and Conflict Resolution Techniques,’ Strategic Management Journal 15(2), 135-152.
Morgan, R. and S. Hunt, 1994, ‘The Commitment Trust Theory of Relationship Marketing,’ Journal of Marketing 58 (July), 20-38.
Mytelka, L., 1991, Strategic Partnerships: States, Firms and International Competition, London: Pinter Publishers.
Pearce, J., G. Bigley, and I. Branyiczki, 1998, ‘Procedural Justice as Modernism: Placing Industrial/Organizational Psychology in Context,’ Applied Psychology: An International Review 47(3), 371-396.
Powell, W., K. Koput, and L. Smith-Doerr, 1996, ‘Interorganizational Collaboration and the Locus of Innovation: Networks of Learning in Biotechnology,’ Administrative Science Quarterly 41, 116-145.
Reardon, K. and R. Spekman, 1994, ‘Starting Out Right: Negotiation Lessons for Domestic and Cross-Culture Business Alliances,’ Business Horizons 37(1), 71-79.
Ring, P. and A. van de Ven, 1994, ‘Developmental Processes of Cooperative Interorganizational Relationships,’ Academy of Management Review 19(1), 90-188.
Robbins, T., T. Summers, and J. Miller, 2000, ‘Intra-and Inter-Justice Relationships: Assessing the Direction,’ Human Relations 53(10), 1329-1355.
Russo, J. and P. Schoemaker, 1992, ‘Managing Overconfidence,’ Sloan Management Review Winter, 7-17.
Saxton, T., 1997, ‘The Effects of Partner and Relationship Characteristics on Alliance Outcomes,’ Academy of Management Journal 40(2), 443-461.
Shan, W., G. Walker, and B. Kogut, 1994, ‘Interfirm Cooperation and Startup Innovation in the Biotechnology Industry,’ Strategic Management Journal 15(5), 387-394.
Shapiro, D., B. Sheppard, and L. Chersakin, 1992, ‘In Theory: Business on a Handshake,’ Negotiation Journal 8, 365-377.
Sheppard, B. and D. Sherman, 1998, ‘The Grammars of Trust: A Model and General Implications,’ Academy of Management Review 23(3), 422-437.
Sitkin, S. and N. Roth, 1993, ‘Explaining the Limited Effectiveness of Legalistic “Remedies” for Trust/Distrust,’ Organization Science 4(3), 367-392.
Spekman, R., T. Forbes, L. Isabella, and T. MacAvoy, 1998, ‘Alliance Management: A View from the Past and a Look to the Future,’ Journal of Management Studies 35(6), 747-772.
Tyler, T. and R. Kramer, 1996, ‘Whither Trust?’ in R.M. Kramer and T.R. Tyler (eds.), Trust in Organizations: Frontiers of Theory and Research, Thousand Oaks: Sage, pp. 1-15.
Welbourne, T., 1998, ‘Untangling Procedural and Distributive Justice: Their Relative Effects on Gainsharing Satisfaction,’ Group and Organization Management 23(4), 325-346.
Williams, M., 2001, ‘In whom we Trust: Group Membership as an Affective Context for Trust Development,’ Academy of Management Review 26(3), 377-396.
Zaheer, A., B. McEvily, and V. Perrone, 1998, ‘Does Trust Matter? Exploring the Effects of Interorganizational and Interpersonal Trust on Performance,’ Organization Science 9(2), 141-159.
Zucker, L., 1986, ‘Production of Trust: Institutional Sources of Economic Structure, 1840–1920,’ Research in Organizational Behavior 8, 53-11.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Daellenbach, U.S., Davenport, S.J. Establishing Trust during the Formation of Technology Alliances. The Journal of Technology Transfer 29, 187–202 (2004). https://doi.org/10.1023/B:JOTT.0000019537.61121.c3
Issue Date:
DOI: https://doi.org/10.1023/B:JOTT.0000019537.61121.c3